My lot size
Family III · Risk
Not to be confused with lot, lot sizes, position size.
My lot size is not a formal trading term but a common phrase traders use to describe the lot quantity they have selected for a specific position. It reflects a personal choice rather than a fixed rule, and the actual number of units represented by one lot depends on the instrument and the broker's specifications.
What the phrase refers to
When a trader says "my lot size", they are typically stating the number of lots they are trading in a given instrument. For example, in spot forex, one standard lot usually represents 100,000 units of the base currency, but this can vary by broker and account type. In futures, the lot size is the contract size defined by the exchange. The phrase is personal and context-dependent, unlike standardised terms such as lot or position size.
Worked example
A trader decides to buy 2.5 lots of EUR/USD. With a standard lot size of 100,000 EUR, the total position is 250,000 EUR. If the price moves 10 pips in their favour, the profit is calculated as 10 pips × 2.5 lots × $10 per pip per lot = $250. The trader's "my lot size" is 2.5 lots.
Why it is not a standard term
"My lot size" is informal and lacks a precise definition because it depends on the trader's account and the instrument. It should not be confused with official terms like lot size, which is a specification, or position size, which is the total exposure. Using the phrase can lead to ambiguity when discussing risk with others.
Often confused with
- lot
- A lot is a standardised contract quantity defined by an exchange or broker, whereas "my lot size" is a personal reference to the number of lots chosen; the visible sign is that "lot" appears in official contract specifications.
- lot sizes
- Lot sizes are the fixed quantities available for an instrument, such as standard, mini, or micro lots, while "my lot size" is the specific quantity a trader selects; the visible sign is that lot sizes are listed in a table of specifications.
- position size
- Position size is the total amount of an asset being traded, expressed in units or currency, whereas "my lot size" is the number of lots; the visible sign is that position size is a monetary or unit value, not a lot count.